Are Mortgages Going Green?

In a nutshell, there are lenders offering ‘Green Mortgages’ for energy efficient homes. While the availability is probably not where we need it to be just yet, there currently are products available. Nevertheless, in a few more years this will become more prevalent as the world is becoming more energy efficient and aware. So watch this space in the world of mortgages. Since you are here, read on to find what you need to know now.

Smart controls are certainly helpful in making your home energy efficient.

What do you need to qualify for a Green mortgage? 

Unquestionably, an energy efficient home is a MUST have! Most lenders who offer green mortgages will only offer this type of mortgage on homes with an Energy Rating of A or B. There are a few who will also offer on C. It is available for purchases, in some cases remortgages and buy to let products as well. Lenders can also offer a Green Improvement scheme to carry out home improvements that will increase your Energy Performance rating. Improvements could include replacing single glazed windows, solar panels, upgrading your boiler ect.

See below a link to the Energy Performance Certificate (EPC) register, where you can check the energy rating for a home you’re interested in buying:


If you have an energy efficient home, could you potentially save money with a Green Mortgage? 

A number of mainstream mortgage lenders are now offering “Green” mortgages that can potentially reward clients who buy an Energy Efficient Home. This may include a cheaper interest rate than their standard products or offering higher cash back incentives.


What lenders currently offer Green Mortgages? 

There are numerous lenders that offer green mortgage deals, these include:

  • Nationwide
  • Natwest
  • Virgin Money
  • Halifax
  • Barclays
  • Kensington
  • Swansea Building Society
  • Saffron Building society

Lenders are joining in all the time so the list will continue to increase. The government plans to get the Energy Ratings in the UK to C or above by 2030 and beyond. The Government Net Zero Strategy statement:

“Upgrading fuel poor homes to EPC Band C by 2030 were reasonably practicable and providing additional funding to the Home Upgrade Grant and the Social Housing Decarbonisation Fund – investing £1.75 billion. Consulting on phasing in higher minimum performance standards to ensure all homes meet EPC Band C by 2035, were cost-effective, practical and affordable.”

To read more download the Full Net Zero Strategy Report below:


The government has a lot of focus on improving EPC ratings across the board so by buying an energy efficient home now, you’re potentially saving yourself cost and effort further down the line to comply with Government implementations. Major surveying companies also feel that over time the more energy efficient your home the higher the potential value could be in the future as we get closer to the government deadline targets if properties aren’t energy efficient or meets the government minimum benchmark there could be issues selling those properties.